Singapore Warns of Uncertain Economic Outlook

Singapore Warns of Uncertain Economic Outlook

Singapore’s central bank, the Monetary Authority of Singapore (MAS), has released its biannual Macroeconomic Review report, stating that the economic outlook for the city-state has become more uncertain. The report highlights that tighter financial conditions in the global economy and muted benefits from China’s reopening are weighing on demand. Despite the increased risks, the MAS has retained its view that Singapore’s economy will expand between 0.5% and 2.5% this year. If the news caught your attention, continue reading the content below.

Uncertain Economic Outlook

The MAS report points out that the risks to growth in the global economy and Singapore are tilted to the downside. The increase in banking industry stresses across global markets since March means lending conditions are expected to tighten even further, resulting in a sharper slowdown in credit growth and weaker economic activity.

US Technical Recession

The report also highlights the possibility of a technical recession in the US later this year, which is a major concern for Singapore’s trade-reliant economy. External risks have been a significant focus for Singapore this year, with the possibility of recession in the US and Europe still on the radar.

Impact of China’s Reopening

China’s reopening was expected to support trade in Asia, but according to the report, the benefits are yet to materialize. Outside of tourism, the boost from China’s reopening on Asian exports is projected to be relatively muted, and the overall contribution from China to regional manufacturing value chains will be weighed down by faltering global demand.

Inflation and Interest Rates

Although demand has fallen, the MAS has flagged that prices are expected to stay elevated. Core inflation, a key gauge tracked by the central bank, slowed for the first time since October, according to a separate report on Monday. However, the reading cooled to 5% in March from a 14-year-high of 5.5% in the previous two months. The MAS left its exchange-rate settings unchanged as inflation eases.

The fragile global growth outlook has led to more central banks pausing or ending their policy tightening campaigns. The MAS has not tightened its exchange rate policy since April 2016, and earlier this month, the MAS left its exchange-rate settings unchanged as inflation eases. Despite the uncertain economic outlook, the MAS has kept its growth view for Singapore between 0.5% and 2.5% this year.

Similar News

COCOS-BCX (COCOS): Empowering the Future of Blockchain Blockchain technology has created a series of radical changes in the gaming industry. Games built on this technology are more decentralized, transparent, and secure than traditional games. Those familiar with the gaming industry are aware...
The Ultimate Metaverse Guide: Discover the Virtual World Imagine a virtual world where billions of people live, work, shop, learn, and interact with each other from the comfort of their physical world seats. In this virtual ecosystem, you have a digital copy known...
What is Hamster Coin (HAM)? First Meme Coin on the BNB Chain Throughout history, there have been meme coins that have attracted attention with their sudden rise and then disappeared by experiencing crashes. Essentially, these assets do not gain value from fundamental values like large cryptocurrencies such...
Discover Metalcore NFT: 10000 Unique NFTs Metalcore NFT: What is the 10000 Unique NFT Collection? In this article on, we will answer all the questions that our readers are curious about in detail. At the same time, we will also...
What is Brawler Bearz NFT? Discover the Digital Bears Brawler Bearz NFT: What is the 4169 Unique NFT Collection? In this article on, we will answer all the questions that our readers are curious about in detail. At the same time, we will...
Mark Zuckerberg 101: The Genius Behind Social Media Empire Mark Zuckerberg is an American entrepreneur, businessman, and philanthropist. He is the co-founder and CEO of Facebook, one of the world’s most popular social media platforms. He is also a founder and CEO of Meta...